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Harmonic Inc. Reports Remarkable Q4 and Fiscal Year 2024 Results

Harmonic Inc. (NASDAQ: HLIT) has announced its unaudited financial results for the fourth quarter and the full fiscal year ending December 31, 2024. Demonstrating robust growth, the company marked record revenues and earnings, reflecting its strong operational execution and technological advancements.

According to CEO Nimrod Ben-Natan, Harmonic achieved a record-high total revenue of $222.2 million, a significant increase from $167.1 million in the same quarter last year, showcasing a remarkable 33% year-over-year growth. This growth was driven by higher revenues in both its Broadband and Video segments.

The Broadband segment alone reported revenues of $171.0 million, compared to $115.2 million in Q4 2023. Meanwhile, the Video segment generated revenues of $51.1 million, slightly down from $51.9 million in the previous year. The overall gross margin also saw improvement, sitting at 56.1% compared to 49.0% a year ago.

In line with these promising results, Harmonic highlighted a notable growth in non-GAAP adjusted EBITDA, which reached $71.8 million, a significant jump from $21.7 million in Q4 2023. This increase underscores the company’s ability to enhance its operational efficiency and profitability amid a competitive landscape.

In response to the positive earnings report, Harmonic's board approved a three-year, $200 million stock repurchase program, which is double the previous authorization. This strategic move reflects the board's confidence in the company's ongoing profitability and growth potential.

The company is strategically positioning itself for future growth, particularly as the industry transitions to Unified DOCSIS 4.0 technology, a standard that promises enhanced speed and performance for broadband services. CFO Walter Jankovic remarked that while caution is warranted due to anticipated shifts in customer deployment timing, he remains optimistic about a return to above-market growth projections starting in 2026.

Business Highlights

• - Deployed cOS™ solution commercially with 127 customers, which represent 33.3 million cable modems globally.
• - Established an exclusive collaboration with Sercomm to further enhance the development of DOCSIS 4.0 technologies.
• - Delivered a notable increase of more than 50% in Q4 2024 Broadband sales from the previous quarter, securing five new clients including Blue Stream Fiber in the USA and IPKO in Europe.
• - Expanded the Video Software as a Service (VOS360), successfully qualifying on a fourth cloud platform with Akamai—and importantly, Harmonic has been selected as a vendor for a new Akamai streaming service.

Looking Ahead

As the company prepares for a new fiscal year, guidance indicates a cautious optimism for Q1 2025 with projected revenues ranging from $120 million to $135 million, reflecting ongoing competitive industry dynamics. Furthermore, the 2025 fiscal guidance suggests anticipated revenues between $585 million and $645 million, implying a strong market recovery and continued customer adoption of advanced broadband services.

Harmonic Inc. continues to establish itself as a leader in the virtualized broadband and video delivery sector, emphasizing innovation, customer satisfaction, and strategic market adaptations to drive growth and value for shareholders. For continuous updates, stakeholders and interested parties can visit Harmonic's Investor Relations.